The main places to open an account are traditional banks, credit unions, and online banks—each with different requirements, fees, and what you can do in person.
A traditional bank is a brick-and-mortar institution with physical branches where you can deposit cash, speak to a teller, and get help in person. Examples include Chase, Bank of America, Wells Fargo, and regional banks specific to your area. These banks typically require an initial deposit (often $25 to $300), a government-issued ID, and proof of address. You walk in, sit down with someone, and leave with an account open the same day.
A credit union is a member-owned financial institution that often has lower fees and higher savings rates than banks, but you must meet membership requirements—usually living or working in a specific area, belonging to a certain employer, or being related to a current member. Credit unions also have physical branches and tellers. You'll need the same documents as a bank: ID, proof of address, and an initial deposit.
An online bank exists only on the internet—no branches, no tellers—but offers lower fees because it has no physical locations to maintain. Examples include Ally, Charles Schwab, and Discover Bank. Online banks have no minimum deposit or very low ones ($0 to $25), but everything happens through their website or app. You upload photos of your ID and proof of address, and the account opens within one to three business days.
Key Takeaways
- Traditional banks and credit unions let you deposit cash and speak to someone in person, but online banks do not have branches and require you to handle everything digitally.
- Credit unions require you to meet membership criteria—usually based on where you live, work, or your family connections—while banks and online banks are open to anyone with an ID.
- Initial deposits range from $0 to $300 depending on the institution; online banks typically ask for the least or nothing at all.
- You will need a government-issued ID and proof of your current address for any account, whether you open it in person or online.
- In-person accounts open the same day; online accounts take one to three business days from the time you submit your documents.
What documents you need to bring or upload
Every bank and credit union requires a government-issued photo ID—a driver's license, passport, state ID card, or military ID. This is non-negotiable and is how the institution verifies you are who you say you are.
You also need proof of your current address. This can be a utility bill, lease, mortgage statement, or bank statement dated within the last 60 to 90 days. Some institutions accept a government notice (like a tax return or voter registration card). A few will accept mail from a government agency addressed to you. Call ahead or check the website to see what that specific bank accepts, because the rules vary.
If you are opening an account in person at a branch, bring the originals. If you are opening online, you will photograph or scan both documents and upload them through the bank's app or website. Make sure the images are clear and show all four corners of the document.
Some banks ask for a Social Security number or Individual Taxpayer Identification Number (ITIN) to set up the account. If you do not have one, ask whether the bank offers accounts without it—some do, though they may have limits on what you can do.
How to choose between a traditional bank, credit union, or online bank
Choose a traditional bank if you need to deposit cash regularly, prefer speaking to someone face-to-face, or want a familiar name. The trade-off is higher fees—monthly maintenance fees, overdraft fees, and ATM fees if you use another bank's machine. If you have a steady paycheck and direct deposit, many banks waive the monthly fee.
Choose a credit union if you meet the membership requirement and want lower fees and better customer service. Credit unions often have no monthly maintenance fee, lower overdraft fees, and higher interest rates on savings. The downside is fewer branches and ATMs—you may not have one near your home or work. Before you commit, check whether the credit union's ATM network covers places you actually go.
Choose an online bank if you are comfortable managing money entirely on your phone or computer, rarely deposit cash, and want the lowest fees. Online banks have no monthly maintenance fees, no overdraft fees (most decline the transaction instead), and no minimum balance. The catch is you cannot deposit cash directly—you have to transfer money from another account or use a mobile check deposit feature if the bank offers it.
If you need both convenience and low fees, some people open accounts at two places: an online bank for savings and bill pay, and a traditional bank or credit union for cash deposits and in-person help.
Steps to open an account in person
Walk into a branch during business hours with your ID, proof of address, and the initial deposit amount (in cash or a check). Tell the teller or greeter you want to open a checking or savings account. They will take you to a desk, ask you questions about what type of account you want, and explain the fees.
You will sign documents—usually a signature card and a deposit agreement that explains the bank's rules. Read these before you sign, or ask the banker to explain anything you do not understand. The banker will take your initial deposit, give you a receipt, and often hand you temporary debit card information on the spot. A physical card arrives in the mail within 7 to 10 business days.
Before you leave, ask for the bank's routing number and your new account number. Write these down or take a photo—you will need them if your employer wants to set up direct deposit or if you need to transfer money from another account.
Steps to open an account online
Visit the bank's website or download its app. Click the button to open a new account. You will answer questions about the type of account, your personal information (name, address, date of birth, Social Security number or ITIN), and your employment status.
The bank will ask you to photograph or scan your ID and proof of address. Make sure the images are clear, show all edges of the document, and are in focus. Upload them through the app or website. The bank will review these within one to three business days.
Once approved, you will receive your account number and routing number by email or in the app. You can start transferring money from another account right away, or wait for your debit card to arrive in the mail (usually 7 to 10 business days). Some online banks let you use a temporary card number in their app to make purchases before the physical card arrives.
What happens if you do not have an address or ID
If you do not have a permanent address, some banks will accept mail from a shelter, a trusted friend's address, or a PO box as proof of address. Call the bank directly and explain your situation—many have workarounds. Credit unions are sometimes more flexible than large banks.
If you do not have a government-issued ID, a few banks will accept a passport from another country, a consular ID, or a tribal ID. Some will open an account with just a Social Security number and a utility bill if you explain why you do not have a photo ID. Again, call ahead. Online banks are sometimes stricter because they cannot verify you in person, but it is worth asking.
If you do not have a Social Security number or ITIN, some banks offer accounts anyway—usually with limits on transfers or investment features. Community banks and credit unions are more likely to do this than national chains. Look for banks that advertise "second chance" or "new to the country" accounts.
Fees and what to watch for
Traditional banks often charge a monthly maintenance fee ($5 to $15) unless you meet conditions like keeping a minimum balance, setting up direct deposit, or maintaining a linked savings account. They also charge overdraft fees ($25 to $35 per transaction) if you spend more than you have, and ATM fees ($2 to $3) if you use another bank's machine.
Credit unions typically have no monthly fee and lower overdraft fees ($15 to $25). ATM fees are rare if you use their network, but using an out-of-network ATM may cost you.
Online banks have no monthly fees, no overdraft fees (they decline the transaction instead), and no ATM fees because they reimburse you for using any ATM. The only catch is that you cannot deposit cash, so if you receive cash regularly, you need another way to get it into the account.
Before you open an account, read the fee schedule on the bank's website or ask for a printed copy. Pay attention to overdraft fees, ATM fees, and what it takes to waive the monthly fee. A bank that charges $15 a month adds up to $180 a year—money you could save by choosing a different bank.
Frequently Asked Questions
Can I open a bank account without a Social Security number?
Some banks will open an account with an ITIN (Individual Taxpayer Identification Number) instead, or in rare cases with just an ID and proof of address. Call the bank directly and ask—community banks and credit unions are more likely to say yes than national chains. Online banks are often stricter because they cannot verify you in person.
How long does it take to open an account online?
The account opens within one to three business days after you upload your documents and the bank approves them. You can start using it (transferring money, paying bills) as soon as you get your account number. Your debit card arrives in the mail 7 to 10 business days later.
Do I have to keep a minimum balance?
It depends on the bank and the type of account. Some banks waive monthly fees if you keep $500 or $1,000 in the account; others have no minimum. Online banks almost never require a minimum. Check the fee schedule before you open the account, or ask the banker directly.
What if I do not have proof of address?
A utility bill, lease, or mortgage statement dated within 60 to 90 days is standard, but some banks accept mail from a government agency, a shelter letter, or a PO box. Call the bank and explain your situation—many have alternatives. Credit unions are sometimes more flexible than large national banks.
Can I open an account if I have been denied before?
Yes. Banks use ChexSystems (a checking account history database) to screen applicants, and a past closure or overdraft may show up. Some banks specialize in "second chance" accounts for people with banking history issues. Credit unions and community banks are often more willing to work with you than national chains.